Bucking current trends, the CR-V doesn't incorporate a V6 engine, but makes due with a spirited 160-hp, 2.4-L 4-cylinder. Fortunately, it doesn't translate into lethargic acceleration. While not quite as quick as Ford's V6 equipped Escape, the Honda out-pulls Land Rover's pricey V6 Freelander by a fare margin - around 9 seconds to 100 km/h compared to 10.5 seconds, respectively. Honda accomplishes this feat with sophisticated engine technology, including i-VTEC variable valve timing. This allows better performance while increasing fuel economy to a combined city/highway rating of 9.4 L/100 km. Its 162 lb-ft of torque, increased from 133 lb-ft last year, results in a maximum towing capacity of 680 kg (1,500 lb) - an increase of 50% from the previous generation CR-V. All round, it's a smooth power unit, quiet at low revs and not at all harsh at its upper end.

Power is made usable via either its standard 5-speed manual or ultra-smooth optional 4-speed automatic transmission, culminating in Honda's Real-time 4WD - virtually unchanged from last year. The system drives the front wheels until reduced traction is experienced, at which time the rear wheels make their contribution. This, and its ability to disengage 4WD when braking, improves fuel economy. While the 'slack' this system produces doesn't help when immediate traction is needed, it works well enough for normal driving, such as paved and light-duty dirt roads.

The CR-V now comes with a 4-wheel independent suspension, including MacPherson struts up front and a double wishbone set up in the rear. Its ride is especially smooth for a compact SUV while decent when the road begins to wind. Also, its reduced turning circle will be appreciated when negotiating tight parking lots. Even more importantly, disc brakes are now attached to all four corners, instead of the front disk, rear drum set-up in the previous model, resulting in shorter than average stopping distances.